Better Win Rate or Higher RR ?

[Raheel Shaikh]

Ok ok ….if no one wants a high win rate and had rather have a low win rate how about a high win rate that scalps AND at the sama time lets runners run for those great big wins. Win/win?? Or something wrong with that too?

Why in the same hell would anyone prefer a low win rate? A trader can only make money on wins. A volley ball team only gets the championship by winning. Bama was number #1. They lost 1 game and find themselves at number 5. They lose a couple more games maybe just one more and they can kiss the championship goodbye. Tampa Bay Bucs win because they got a winning quarterback. Yes, a quarterback who believes in winning, not losing. Mr Brady does those things that make for a winner. His lifestyle he adjusts to keep him winning.

If a trader has a low win rate is something wrong?? Why be happy with the “Hail Mary” pass of trading? Yes, make those trading first downs! Make those trading 3 down conversions. But don't get in the red zone and can’t punch it in. Leave a trading “runner” for punching it in. But failing to make those trading first downs and third down conversion will render a trader to relying on “hail Mary” pass for $$$$. Then there is always the problem of market interceptions and “puke six”. The best defense is a good offense. Those 5 and 6 yard runs and short trading passes keep the $$$ moving down the field. And increase the odds for a profitable breakout that makes even more $$$. The longer a TR goes on the closer to a BO (pass..think a Brady BO pass to Evans) pass event the game is getting. GANN was right “time” factors in.

well there are different types of traders, and some can work well with a low Strike rate and more %
but some need that peace of mind haha (like me )
its fair to say they can also make the same amount as the ones with the high win rate and low RR
You just gotta keep your head steady.

Trading is a “high performance” game. One has to learn how to navigate the unexpected and the variables and still come out ahead. Relying only on the “big play” is not the way IMO. NEVERTHELESS, a trader should want to capitalize on the big plays when they occur. However, them little plays aren’t to be discounted at least not in my books. LOL.

 

[Raheel Shaikh]

Have you ever taken your own combine test/trading deal, as your company rules dictate? If so, how did you do?

Yes, for over one and half year i have been trading on the rules laid by the company
never have i violated a daily drawdown or monthly drawdown.

When i had a low win rate strategy, i would reduce my risk to a significant level so even if i have 5 losses in a row I'm not down bad
keeping in the game and another day to make up the losses

Now that i have a better win rate i risk sufficient to be making good % even with a target at 3R

 

[sebking1986]

Possible to make very good money having reasonable targets for both. 50% win rate at 3R trades is very profitable long term if you can do it.

 

[Raheel Shaikh]

I don't think you get to choose.

The highest win rate AND the greatest R/R both come from (1) proper technical entries, and (2) exercising tight stop discipline. IOW... you don't get to choose "either/or". You get BOTH or NEITHER.

Well you get to chose that based on the strategy you trade
i have learnt of many mentors in the past couple years.
based on your style of trading you can defo pick which one you wanna trade the live market off

 

[Millionaire]

Would you rather have a 30% win rate and Average 10R on trades, or 70-80% win rate with 2R-3R ??

Both would make you extremely really rich, very quick.
Both are also cloud cooku land.

10R winners are rare, not going to get them anywhere near 30% of the time.
2R-3R are more common but nowhere near as common as 70 to 80% of the time.

Even 1R winners 80% of the time will make you very rich very quick, but even thos is very hard to achieve.

 

[longandshort]

this is a stupid question. you can't know ex-ante returns like this, or everyone who buys otm calls would be trillionaires.

in real life, you must use actual data based upon your real performance -- how good are you at identifying opportunities that make 10x within your time horizon? what does your win rate actually look like?

 

[Raheel Shaikh]

Both would make you extremely really rich, very quick.
Both are also cloud cooku land.

10R winners are rare, not going to get them anywhere near 30% of the time.
2R-3R are more common but nowhere near as common as 70 to 80% of the time.

Even 1R winners 80% of the time will make you very rich very quick, but even thos is very hard to achieve.

exactly you have to find what suits the best for you and run it

 

[Raheel Shaikh]

Possible to make very good money having reasonable targets for both. 50% win rate at 3R trades is very profitable long term if you can do it.

yes, consistency matters the most.